New to credit cards

ptlshooper

Hi asking a question for my son. My son would like to get a credit card to use to pay for petrol, he intends to set up DD to pay off in full each month, he's over 18, in full time employment although only earning around 11k, very little outgoings, he's checked Equifax and has no problems on his credit file (none were expected) but he's never had/applied for any credit before so would also use the credit card to help build a credit history.
His problem is that he doesn't know which sort of card to apply for, should he go for 0% or is he more likely to get one with a higher % rate?
Any help in how to narrow down his options would be appreciated.
Thanks.

MallyGirl

with little or no credit history he is not going to get a 0% card - but that won't matter if he pays in full anyway. He will probably need a subprime/credit builder card like Vanquis or Aqua.

Get him to take a look on the eligibility tool:
https://www.moneysavingexpert.com/eligibility/credit-cards/

Dobbibill

Paying off in full each month by DD will mean the APR has no impact on his balance with the majority of cards.

Has he spoken to his own bank?
They will have built history up with each other so will see him income/outgoing activity on his bank account to support their decision.

He can give them a ring and just ask the question, rather than doing a full application blind.

If they tell him he isn't eligible then move on to sub-prime cards to begin with.

ptlshooper

Thank you MallyGirl I will get him to have a look at those type of cards and at the eligibility tool.

ptlshooper

Thanks Dobbibill, he has had a look at his own bank (NatWest) but they appear to have an annual fee for their credit cards. I will get him to speak to them and ask though.

boo_star

ptlshooper wrote: »

Thanks Dobbibill, he has had a look at his own bank (NatWest) but they appear to have an annual fee for their credit cards. I will get him to speak to them and ask though.

I wouldn't bother with Natwest at all.

He should try for a subprime card (Aqua or Capital One) and after a year or so, go for a more mainstream card.

The RBS Group have really shot themsrlves in the foot with their annual charges.

Dobbibill

ptlshooper wrote: »

Thanks Dobbibill, he has had a look at his own bank (NatWest) but they appear to have an annual fee for their credit cards. I will get him to speak to them and ask though.

Avoid them then. He doesn't want/need to pay an annual fee.

As boo_star said, they've shot themselves in the foot there.

ptlshooper

Thank you boo_star & Dobbibill, yes I was quite surprised to find NW charged for their cards. I'm not sure what the term sub prime means but will get him to look into it and see where he goes from there using the eligibility tool.

Dobbibill

Sub-prime are starter cards with the likes of Aqua, Vanquis, Capital One etc (not normally from a high street bank, specifically aimed at people who have no/bad credit history - with very high APR)

Try this link for the eligibility checker for those specific type of cards

https://creditcards.moneysavingexpert.com/?bad-credit&_ga=1.243223746.1700133485.1463375433

If your son DOES pay off in full each and every month then the APR will have little/no effect. Make sure he knows not to withdraw cash from it & overseas purchases normally add extra fees/charges. Everyday purchases for fuel and such like will be ideal to pay off in full.

ptlshooper

Brilliant thanks a lot for that. Yes he knows not to draw cash and will set up the DD to pay off in full as soon as he gets the card.
Thanks again.

CLAPTON

ptlshooper wrote: »

Brilliant thanks a lot for that. Yes he knows not to draw cash and will set up the DD to pay off in full as soon as he gets the card.
Thanks again.

he might want to consider barclaycard initial which is specifically aimed a first time people